Solar Industries India (SOLARINDS) Q4 06/07 earnings summary

Executive summary

• FY07 turnover reached ₹237 crore, up 40% YoY, while consolidated PAT fell nearly 14% to ₹19.21 crore amid severe pricing pressure and higher input costs.

• Standalone turnover grew 35.44% to ₹135.79 crore and PAT rose to ₹10.35 crore from ₹8.86 crore; the board proposed a 15% dividend.

• Growth came from higher bulk and cartridge explosive sales, exports and infrastructure-linked demand; SAP implementation was completed.

Financial highlights

• Consolidated sales/services were ₹206.13 crore vs ₹147.19 crore; consolidated profit after tax was ₹19.22 crore vs ₹22.16 crore.

• Standalone sales were ₹135.79 crore vs ₹100.26 crore; PBT was ₹13.90 crore vs ₹11.04 crore and PAT was ₹10.35 crore vs ₹8.86 crore.

• Standalone interest and finance charges rose to ₹5.32 crore from ₹2.47 crore; selling expenses increased to ₹13.83 crore from ₹8.43 crore.

• Consolidated net current assets were ₹175.54 crore vs ₹135.71 crore; sundry debtors rose to ₹56.74 crore from ₹31.96 crore.

Outlook and guidance

• New high-capacity mines were expected to lift demand for bulk explosives; cartridge explosives and detonators were expected to grow steadily, with emphasis on value-added products.

• The completed 2007-08 Coal India tender was expected to deliver improved price realization after higher volumes had been won at competitive prices.

• Export opportunities and new application-specific products were targeted; investment in R&D and testing facilities was intended to support product development.